NASDAQ$NSSC

Napco Security Technologies Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

NAPCO reported a 27% increase in sales to a record of $35.9 million, with recurring service revenues increasing 35% to $12.0 million.

NAPCO Security Technologies, Inc. announced strong revenue growth for the third quarter of fiscal 2022, with sales reaching a record $35.9 million, a 27% increase compared to the same period last year. Recurring service revenue also saw a significant increase of 35%, reaching $12.0 million. However, net income decreased by 34% due to increased costs from supply chain disruptions.

  • Net sales increased by 27% to a record $35.9 million.
  • Recurring service revenue increased by 35% to $12.0 million.
  • Net income decreased by 34% to $2.9 million due to supply chain disruptions.
  • Cash, cash equivalents, and marketable securities increased by 18% to $47.4 million.

Headline financials

Total Revenue

$35.9M

Previous: $28.2M+27.2%
EPS (adj)

$0.08

Previous: $0.12-33.3%
Capital Expenditures

-$1.19M

Previous: -$566K-110.1%
Free Cash Flow

$2.08M

Previous: $3.79M-45.1%
Net Income

$3.27M

Previous: $4.36M-24.9%
Operating Income

$4.58M

Previous: $5.03M-8.9%
Gross Profit

$15M

Previous: $12.9M+16.4%
Cash & Equivalents

$42.1M

Previous: $28.7M+46.7%
Total Assets

$137M

Previous: $114M+19.8%
Stock-Based Comp

$35K

Previous: $84K-58.3%

Revenue & EPS history

Napco · Revenue · Quarterly

$35.9M

Q3 2022+27.2%vs Q3 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Napco · $16.1M total across 1 segment · Q4 2023

  • Recurring Services
    $16.1M

Forward guidance

NAPCO is confident in its ability to navigate the difficult economic environment and continue to deliver strong growth in both equipment and recurring revenue. The demand for products and services continues to be very strong.

Tailwinds

  • School security jobs are returning.
  • Recurring service revenue remains strong.
  • Management has experience dealing with supply chain shortages.
  • Providing seamless security solutions for customers.
  • Growing recurring revenue with existing and new products.

Headwinds

  • Ability to fully meet the strong demand for products continues to be constrained by the ongoing supply chain challenges.
  • Electronic component shortages and logistics delays.
  • Constraints have slowed the pace of revenue realization.
  • Historically high backlog levels which may continue throughout calendar 2022, particularly for electronic products.
  • Volatility associated with shortages of electronic components, increased shipping costs and raw material price inflation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.4%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+33.0%

Q1 2024

Best reaction

-26.6%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-15.2%-12.6%-22.9%
Q2 2026+11.4%+18.3%+18.1%
Q1 2026-6.8%-4.6%-7.1%
Q3 2025+3.6%+10.9%+20.2%
Q2 2025-26.6%-29.9%-33.7%
Q1 2025-6.9%+0.2%+5.7%
Q4 2024-16.4%-16.4%-25.2%
Q3 2024+7.7%+4.5%+22.0%
Q2 2024+21.3%+25.7%+14.9%
Q1 2024+33.0%+35.6%+69.5%
Q4 2023+8.9%-38.4%-38.6%
Q3 2023+20.9%+22.8%+39.2%
Q2 2023+14.3%+1.6%+8.8%
Q1 2023+8.9%+13.0%+5.0%
Q4 2022+16.3%+13.9%+17.2%
Q3 2022-2.2%+4.0%+21.9%
Q2 2022-2.9%-3.9%-0.1%
Q1 2022-5.9%-3.4%+2.5%
Q4 2021+18.5%+8.7%+18.3%
Q3 2021-1.8%-2.9%+1.5%
Q2 2021+15.1%+20.6%+33.5%
Q1 2021+10.3%+16.3%+25.3%
Q4 2020-4.8%-3.3%+5.6%
Q3 2020+12.2%+19.1%+34.0%
Q2 2020-25.6%-23.3%-30.0%
Q1 2020-0.1%-1.6%+4.3%
Q4 2019-24.0%-25.3%-26.2%
Q3 2019+12.0%+10.6%+21.2%
Q2 2019+21.8%+29.7%+32.9%
Q1 2019+12.9%+15.0%+7.8%
Q4 2018+2.0%+2.0%-3.6%
Q3 2018+7.9%+7.3%+7.8%
Q2 2018-0.4%-0.5%+1.6%
Q1 2018-3.4%-5.1%-5.6%
Q4 2017+18.6%+9.0%+28.4%
Q3 2017-5.0%-10.0%-6.7%
Q2 2017-0.6%-2.7%+6.5%
Q1 2017+4.8%+6.4%+19.1%
Q4 2016-5.9%-7.3%-2.0%
Q3 2016-0.7%
Q2 2016-2.6%
Q1 2016-4.4%
Q4 2015-3.1%
Q3 2015+2.7%
Q2 2015+8.0%
Q1 2015-6.1%
Q4 2014+5.1%
Q3 2014+7.2%
Q2 2014-5.9%
Q1 2014-1.3%
Q4 2013-1.8%
Q3 2013-1.8%
Q2 2013+2.9%
Q1 2013-3.7%
Q4 2012+7.6%
Q3 2011-7.7%
Q3 2012-7.7%
Q2 2011-10.7%
Q2 2012-10.7%
Q1 2012-1.8%
Q4 2011+1.8%
Q1 2011+1.8%
Q4 2010-2.2%
Q3 2010-0.9%

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